Excellon Provides Corporate Update Announces Termination of La Negra Acquisition
Excellon Provides Corporate Update
Announces Termination of La Negra Acquisition
Toronto, Ontario--(Newsfile Corp. - July 20, 2023) -
Excellon Resources Inc. (TSX: EXN) (OTCQB:
EXNRF) (FSE: E4X2) ("Excellon"
or the
"Company")
is providing the following updates:
Termination of the La Negra Acquisition
Earlier today, the Company unexpectedly received a notice of termination of the previously announced
acquisition of the La Negra project from the seller, Dalu S.à r.l., an entity owned by an investment fund
managed by Orion Resource Partners ("
Orion
").
Prior to receipt of the termination notice, the Company
had been in discussions with Orion regarding options to advance the acquisition of La Negra to closing,
including securing necessary financing
1
.
Consequently, the Company is also announcing the termination of its previously announced subscription
receipts offering
2
.
Convertible Debentures and Liquidity
The Company is in advanced discussions with holders of more than 66-2/3% of the principal of its
outstanding convertible debentures maturing on July 30, 2023 in the principal amount of C$17.9 million
(the "
Debentures
") with a view to extending the maturity date and more broadly restructure the
Debentures.
The Company has been actively working with the noted debenture holders to reach an
agreement on the terms of such extension and restructuring; however, there can be no assurance that
such agreement will be reached prior to maturity. Based on discussions to date, the Company
anticipates that the terms of any such extension and restructuring will differ from the terms announced on
January 9, 2023
3
.
In parallel, the Company continues to actively assess various interim financing options as well as other
corporate development and strategic opportunities to complement the Company's go-forward strategy,
which may include divestitures, mergers or spin-offs of the Company's assets to provide additional near-
term liquidity. There can be no assurance that any such interim financing will be secured or any such
other opportunities realized.
The Company will provide updates to the market on progress in due course if and when developments
arise.
Extension of Annual Meeting Deadline
The Company has been granted an extension by the Toronto Stock Exchange to hold its annual meeting
of shareholders by no later than September 29, 2023. The Company will provide further details regarding
its annual meeting in the coming weeks.
Board of Directors
Jeff Swinoga and Zoya Shashkova have resigned from the Company's board of directors (the "
Board
")
effective July 23, 2023. The Board has consequently reconstituted the Audit Committee with immediate
effect.
Mr. Laurie Curtis, the Company's independent chair of the Board, will remain a member of the
Audit Committee and Mr. Craig Lindsay and Mr. Brendan Cahill were appointed to fill the vacancies.
Mr.
Lindsay, who is independent within the meaning of National Instrument 52-110 - Audit Committees ("
NI
52-110
"), will be appointed as Chair of the Audit Committee. In light of the resignations, the Board is
availing itself of the temporary exemptions contained in NI 52-110 to appoint Mr. Cahill to the Audit
Committee.
About Excellon
Excellon's vision is to realize opportunities through the acquisition of advanced development or
producing assets with further potential to gain from an experienced operational management team for
the benefit of our employees, communities and shareholders. The Company is advancing a portfolio of
silver, base metals and precious metals assets including Kilgore, an advanced gold exploration project
in Idaho; and Silver City, a high-grade epithermal silver district in Saxony, Germany with 750 years of
mining history and no modern exploration.
Additional details on Excellon's properties are available at
www.excellonresources.com
.
For Further Information, Please Contact:
Excellon Resources Inc.
Shawn Howarth, President & Chief Executive Officer
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
All statements, other than statements of historical fact, contained, referenced or incorporated by
reference in this news release constitute "forward-looking statements" and "forward-looking
information" (collectively, "
forward-looking statements
") within the meaning of applicable Canadian
and United States securities legislation. Generally, these forward-looking statements can be identified
by the use of forward-looking terminology such as: "actively", "advanced", "anticipates", "assess",
"believe", "coming", "considering", "continues", "development", "due course", "expected",
"exploration", "extending", "extension", "focused", "forward", "further", "go-forward", "if", "liquidity",
"looking", "maturing", "may", "near-term", "opportunities", "options", "outcome", "outstanding",
"possible", "potential", "progress", "provide", "reach", "restructuring", "risk", "soon", "strategy", "subject
to", "timeline", "to be", "updates", "view", "vision", "when", "will", and "would", or variations of such
words, and similar such words, expressions or statements that certain actions, events or results can,
could, may, should, will, would (or not) be achieved, occur, provide, result, complete or support in the
future or which, by their nature, refer to future events. In some cases, forward-looking information may
be stated in the present tense, such as in respect of current matters that may be continuing, or that
may have a future impact or effect. Forward-looking statements include statements regarding the
extension and restructuring of the Debentures (including the terms of any such extension and
restructuring and any agreement in respect thereof); liquidity; interim financing options and any other
corporate development and strategic opportunities (including divestitures, mergers or spin-offs of the
Company's assets) and purpose or outcome thereof (including any complement to go-forward strategy
or additional near-term liquidity); Excellon's vision and advancement of its portfolio; and any updates
to the market regarding any of the foregoing. Although the Company believes that such statements
are reasonable, it can give no assurance that such expectations will prove to be correct, and any
forward-looking statements by the Company are not guarantees of future actions, results or
performance. Forward-looking statements are based on assumptions, estimates, expectations and
opinions, which are considered reasonable and represent best judgment based on available facts, as
of the date such statements are made. If such assumptions, estimates, expectations and opinions
prove to be incorrect, actual and future results may be materially different than expressed or implied
in the forward-looking statements. Forward-looking statements are inherently subject to known and
unknown risks, uncertainties, contingencies and other factors which may cause the actual results or
performance of the Company to be materially different from any future results or performance
expressed or implied by the forward-looking statements. Such risks, uncertainties, contingencies and
other factors include, among others, the "Risk Factors" in the Company's annual information form
dated March 31, 2023 (the "
2023 AIF
"), and the risks, uncertainties, contingencies and other factors
identified in this news release, the Company's Management's Discussion and Analysis, and
accompanying financial statements, for the year ended December 31, 2022 and quarters already
ended in 2013, the La Negra Technical Report, the Excellon news releases referenced in this news
release, and the Company's other applicable public disclosure (collectively, "
Company Disclosure
").
The foregoing list of risks, uncertainties, contingencies and other factors is not exhaustive; readers
should consult the more complete discussion of the Company's business, financial condition and
prospects that is provided in the 2023 AIF and the other Company Disclosure. The forward-looking
statements referenced or contained in this news release are expressly qualified by these Cautionary
Statements as well as the Cautionary Statements in the the other Company Disclosure. Forward-
looking statements contained herein are made as of the date of this news release (or as otherwise
expressly specified) and the Company disclaims any obligation to update any forward-looking
statements, whether as a result of new information, future events or results or otherwise, except as
required by applicable laws.
1
For further details on this previously announced acquisition, see the Company's news release dated January 9, 2023.
2
For further details on this previously announced offering, see the Company's news release dated April 13, 2023.
3
For further details on this previously announced Debenture restructuring, see the Company's news release dated January 9, 2023.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/174296